New Laws In 2025 That Could Directly Affect Your Wallet

Along with new resolutions, gym memberships, and wall calendars, 2025 promises some big legislative changes. While Donald Trump's second term presents the possibility of tariffs that consumers will ultimately pay for alongside an increase in the national debt, changes at the state level will also affect consumers. In fact, for many, the changes have already begun as legislation went into effect with the new year. From new gun laws to public safety policies to social media restrictions, there are a host of new laws that could be affecting you depending on the state you live in. While there can be a lot to know about these newly implemented pieces of legislation, financially focused consumers might be more curious about what new laws will directly affect their wallets.

It's worth noting that not all of the technically "money-saving" laws that have gone into effect so far in 2025 are necessarily positive. For instance, Texas' decision to eliminate all vehicle safety inspections could end up leading to increased costs for things like car insurance, roadwork, and even medical bills. Similarly, decisions like Colorado's law mandating that all eggs must come from cage-free facilities could place an even higher financial premium on already skyrocketing egg prices. With that in mind, some new legislation could end up having more immediate, and significant, financial consequences for workers and consumers alike. Let's dive into some of the most significant legislation that could affect your wallet in 2025.

Twenty one states started 2025 with a minimum wage hike. According to the Economic Policy Institute (EPI) these pay raises ensure that more than 9.2 million workers across the country earn a combined $5.7 billion more. Among the states that raised their wages, Washington, California, and Connecticut now top the country with minimum wages over $16 an hour. EPI data also found that these increases will be especially significant for historically underpaid groups. For example, women comprise 58.2% of the workers receiving these raises. Plus, despite 9.1% of workers in these states being Black a disproportionate amount of Black workers (11.3%) will receive wage increases. Similarly, despite being 19.5% of the workforce in these states, 38.8% of Hispanic workers will receive wage increases. Overall, 20.4% of the workers who will be affected by these wage increases belong to families with incomes that fall below the federal poverty line (with 48.5% of them falling below twice the poverty line).

States that increased their minimum wages fell into one of two categories: indexed wages and ballot measures. Fourteen of the 21 states with wage increases in 2025 are indexed, meaning their minimum wage increases automatically according to inflation adjustments (and often not by enough). Full time workers in these states can expect an average of $420 more per year. Meanwhile, workers in states where minimum wage increases were the result of ballot measures and legislation will receive larger pay increases, with full-time workers in these states earning an average of between $731 and $868 more per year.

While minimum wage increases help many consumers' wallets, new car insurance requirements could have the opposite effect. These new laws specifically affect residents in California, Utah, and Virginia. As it stands, residents in these states are required to have car insurance for their vehicle. Depending on the specific state, this mandated car insurance also has specific required minimums for things like bodily injury and property damage liability coverage. As a quick refresher, car insurance liability limits essentially cover any damages you might cause to others. These limits represent the maximum amount your insurer will pay on a claim in the event of an accident, meaning any additional amount falls to you to cover. While that might leave you wondering why more people don't automatically select higher limits, the additional premiums for higher coverage can be a significant financial barrier for many consumers.

Residents in California, Utah, and Virginia must now carry insurance coverage with higher liability limits than they were previously required to. Each state raised their specific minimums across all three categories (bodily injury liability per person, bodily injury per accident, and property damage per accident), though each state did this at different levels from one another. Plus, while none of these states require uninsured/underinsured motorist coverage, they did adjust required policies to match the liability limits for the other categories. While drivers in these states already had their coverage automatically adjusted, as of January 1, they could face higher premiums with their next policy payment cycle (on top of already staggeringly high premiums).